Mortgage applications at Commonwealth Bank, Westpac and ANZ have fallen at least 12% since the government’s May budget paved the way to remove investor tax breaks, reflecting a cooling Australian housing market. The weakness has pushed bank shares lower and highlighted pressure on profitability. Earlier rises in borrowing costs had already damped demand and prices in Sydney and Melbourne are retreating. Commonwealth Bank CEO Matt Comyn said the bank has not yet seen the weakness spill over into

Mortgage applications at Commonwealth Bank, Westpac and ANZ have fallen at least 12% since the government’s May budget paved the way to remove investor tax breaks, reflecting a cooling Australian housing market. The weakness has pushed bank shares lower and highlighted pressure on profitability. Earlier rises in borrowing costs had already damped demand and prices in Sydney and Melbourne are retreating. Commonwealth Bank CEO Matt Comyn said the bank has not yet seen the weakness spill over into household spending or broader activity. With the Middle East conflict lifting inflation and some firms remaining cautious, housing credit growth is expected to slow further next year.